Stocks end dull amid plummeting volumes

Karachi Stock Exchange benchmark 100-share index ends 0.08 per cent or 9.06 points down at 11,431.01.

KARACHI: The stock market snapped a three-day bullish run and ended flat in a sluggish session on Tuesday.

The Karachi Stock Exchange benchmark 100-share index ended 0.08 per cent or 9.06 points down at 11,431.01.

Volumes remained on the lower side as participants remained cautious, possibly awaiting CPI inflation numbers for November expected later this week, said Elixir Securities equity dealer Sara Shahid.

Volumes dropped 31 per cent to 118.3 million shares compared with 170.5 million shares traded a day earlier.

Moreover, the market is also waiting to see whether the reformed general sales tax (RGST) is approved by parliament, a measure on which future International Monetary Fund loans depend, said Shahid.

With no upcoming triggers, stock-specific interest is expected while foreign flows are likely to decline because of the upcoming festive season, added Shahid.

Some positive activity was witnessed in exploration and production (E&P) stocks following the rising trend in international crude oil prices. Oil and Gas Development Company, Pakistan Petroleum Limited and Pakistan Oilfields inched up by 0.3 per cent, 0.2 per cent and 0.8 per cent, respectively.

Bank Alfalah was the volume leader with 8.02 million shares gaining 1.5 per cent to finish at Rs10.22.

It was followed by Nishat Chunian Power Limited with 7.97 million shares losing Rs0.24 to close at Rs15.27.

Nishat Mills Limited, the third most traded scrip, remained firm throughout the day due to some local buying interest despite reports that the World Trade Organisation has declined a one-time waiver for European Union concessions for 75 exportable items, dashing hopes of the textile sector. The stock gained Rs1.15 to close at Rs62.19 with 7.48 million shares changing hands.

Published in The Express Tribune, December 8^th, 2010.